Friday, July 15, 2016

What can be done to improve financial literacy?

The Christian Science Monitor has an interesting article that looks at "what can be done" to tackle poor financial literacy.  The article hits all the right notes.  We'd also add making sure all communities can access financial advice and tools.

Key graph:
One would assume that the financial crisis in 2008 would lead to better financial practices in 2016, but a new report by FINRA Investor Education Foundation indicates that Americans are not saving for the long-run, even though they are on a better financial footing six years after the Great Recession, which began when a housing bubble burst in 2007 and led to years of decreased consumer spending. In America, 18 percent are spending more than their household income; 21 percent have overdue medical bills; 32 percent are paying the minimum amount on their credit card; and 63 percent failed FINRA’s financial literacy test. What’s worse is that many Americans don’t realize how much they don't know.

Tuesday, July 5, 2016

Ebony Tackles Planning for Life After Death has a nice write-up on the important financial security life insurance can provide.  The article touches on some of the disparities in usage between communities.

Key point:
A 2011 study sponsored by two leading insurance industry associations, LIMRA and the nonprofit LIFE Foundation (now known as Life Happens), found that African-Americans are more likely to have life insurance, with 76 percent of those surveyed owning insurance, versus 62 percent of Whites and 54 percent of Hispanics. Underinsurance, however, remains a problem; a 2012 poll revealed that 42 percent of Blacks said they were in need of more life insurance, compared with 32 percent of the total U.S. population.